In general, individuals and families may be eligible for the premium tax credit if their household income for the year is at least 100 percent but no more than 400 percent of the federal poverty line for their family size.

How much is the premium tax credit?

The marketplace determines that they are eligible for a premium tax credit of $10,793 for the year.

What is the penalty for not having health insurance in 2015?

For 2015, the penalty for no health insurance is $325 per person or 2% of your annual household income – whichever is higher. For 2016, the fee is $695 or 2.5% of your income — whichever is higher. For many people, that’s more than the yearly cost of health plans they can find on HealthCare.gov.

How do you qualify for the premium tax credit?

To be eligible for the premium tax credit, your household income must be at least 100 – but no more than 400 – percent of the federal poverty line for your family size, although there are two exceptions for individuals with household income below 100 percent of the applicable federal poverty line.

What happens if you choose not to have health insurance in 2014?

The penalty for not having health insurance, at least for 2014, is up to $95 per adult and $47.50 per child or 1 percent of your taxable income — whichever is greater. It does go up substantially in a couple of years. The amount you owe will be pro-rated to reflect the number of months you were without coverage.

What is the tax credit for health insurance?

The premium tax credit – also known as PTC – is a refundable credit that helps eligible individuals and families cover the premiums for their health insurance purchased through the Health Insurance Marketplace.

What do you need to know about the premium tax credit?

The premium tax credit – also known as PTC – is a refundable credit that helps eligible individuals and families cover the premiums for their health insurance purchased through the Health Insurance Marketplace. To get this credit, you must meet certain requirements and file a tax return.

How does advance credit work for health insurance?

Advance credit payments are amounts paid to your insurance company on your behalf to lower the out-of-pocket cost for your health insurance premiums. For more information about the Premium Tax Credit, see our Questions and Answers and other guidance.

When do I have to repay premium tax credit?

If you use more advance payments of the tax credit than you qualify for based on your final yearly income, you must repay the difference when you file your federal income tax return. If you use less premium tax credit than you qualify for, you’ll get the difference as a refundable credit when you file your taxes.